Causes of poverty include:
• Changing trends in a country's economy- this causes instability in the market and many businesses struggle to survive and therefore employees lose their jobs.
• Lack of education- A person without the required skills and training will struggle to find a job.
• Having a culture of poverty- the cycle of poverty will be carried over to future generations as proper education cannot be afforded.
• Overpopulation- For every 1000 houses the government builds there are another 5000 new babies born. Overpopulation means there will not be enough jobs available for the majority of the population, which contributes extensively to the cycle of poverty.
• Epidemic diseases such as AIDS and malaria- money …show more content…
People were treated unfairly in the past which caused them not have access to education. This contributed to the poverty cycle which we still experience today.
Effects of poverty:
• Negative physiological effects- Hunger, illness, and thirst are all caused by poverty as individuals do not have access to food, proper housing or clean water. This may also lead to many health risks such as malnutrition, tuberculosis and HIV/AIDS.
• Individuals will become unmotivated, develop a negative outlook and experience a lack of dedication.
• When basic needs such as adequate housing, healthcare, education and employment are not met by society, many will turn to crime and violence to survive.
• Weak rand currency as the country lacks growth and development in the economical and political sectors.
• Businesses are forced to outsource because the local community lacks people with adequate skills and training. This may be much more expensive for the business and the community will have even less job opportunities.
Solving the Problem of Poverty:
Question 3: Mr Price …show more content…
Price Home, Mr. Price Sport, Milady’s and Sheet Street. It boasts around 950 outlets, most of which are in South Africa, but it also has a presence in ten other African countries, including Zambia, Kenya, Mozambique and Mauritius. It sees the rest of the continent as a key long term growth prospect, and is particularly interested in opportunities in Nigeria. That country recently lifted a ban on clothing imports, opening up a massive and underserviced fashion market. Johannesburg - Mr. Price [JSE:MPC] plans to open stores in Australia by the end of this year, the firm said on Tuesday.
WHAT RISKS DOES MR PRICE FACE?
• Although the group has done exceptionally well in recent years despite the burden on local consumers, there are indications that consumer spending may drop off even further over the next 12 to 24 months. All retailers will be aware of the threat of inflation, higher interest rates, rising fuel prices and lower public sector wage growth.
• Large lenders such as African Bank and Capitec have been increasing both the size and the term of loans, effectively creating greater buying power for lower income earners. However, there are concerns about how long this can continue.
• As Mr. Price imports most of its stock, it is also more heavily influenced by fluctuations in the exchange rate than its competitors. A weaker rand will impact on the group’s margins as it has to pay more for its